Buy 2 Small Cap Sugar Stocks That Can Jump Up To 34%: ICICI Direct

ICICI Direct has assigned buy call to 2 sugar stocks that can soar up to 34%. These two stocks are Dalmia Bharat Sugar and Industries Ltd and Dwarikesh Sugar Industries Ltd. Check details related to these stocks below:

Buy Dalmia Bharat Sugar and Industries: ICICI Direct has recommended investors to buy Dalmia Bharat Sugar and Industries with target price of Rs 490 per share. Current market price of the stock is Rs 366.60 per share on BSE. If you buy Dalmia Bharat Sugar and Industries share now, you can get likely return of 34%. The stock gave 11% return in last 6-months, fell 20% in last 1-year, 23% return in last 2-years, and 501% return in last 3-years.

According to the brokerage, "It is fastest in utilising B-heavy & Sugarcane juice to produce ethanol. Distillery volumes to grow 1.8x to 22 crore litre by FY24. The company is aggressively exporting sugar & utilising higher global white sugar prices. We value the stock at Rs 490/share with a BUY recommendation."

Buy Dwarikesh Sugar Industries: Current market price of Dwarikesh Sugar Industries is Rs 94.20 per share. ICICI Direct has assigned buy call to Dwarikesh Sugar Industries with target price of Rs 115 apiece. If you buy Dwarikesh Sugar Industries share now, you can get likely return of 22%. The stock declined 23% in last 1-year, gave 87% return in last 2-years, and 416% return in last 3-years.

According to ICICI Direct, "DSL's share price has gone up 3.9x in the last five years (from Rs 23 in April 2018 to Rs 92 in April 2023). We cut earnings estimate considering lower sugar volumes, dip in recovery, increase in sugarcane SAP & higher income tax rate. We value the stock at Rs 115, valuing the business at 12x FY25 PE."

Disclaimer: The stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.